Future of banking services depend on FinTechs, says CBN

The Central Bank of Nigeria has advised Banks in the country to collaborate with financial technology (FinTechs) companies and not attempt to stifle their operations out of fears of becoming irrelevant.

Deputy Governor, Operations at the apex bank, Mr. Adebayo Adelabu stated this at the just concluded 2017 annual retreat of the Committee of E-Business Industry Heads in Abeokuta, the Ogun State capital.

He cautioned banks not to nurse any form of fears working with FinTechs as only healthy collaboration will deepen the need for banking services side by side with FinTechs, saying the deal will further boost the level of financial inclusion in the country.

Speaking on the theme of the retreat, ‘Repositioning digital payments to achieve the financial inclusion goals of the financial system strategy,’ he called on CeBIH and banks to be innovative in evolving options to meet the demand of the unbanked at reasonable price to them.

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“This business case, as you may have observed, is driving the interest of fintechs into your terrain and failure to be agile in responding, not necessarily by stifling the space but by collaborating with the new entrants will impact you negatively. I therefore urge you to take this challenge and respond appropriately as other financial services providers outside the banking industry are waiting on the payments system to enable the extension of their services to the un-served and underserved,” Adelabu said.

Recalls that during the recent seminar organized by the Nigeria information Technology Reporters’ Association (NITRA), in Lagos, founder of CWG Plc., Austin Okere hinted that the growing innovations of the FinTech companies may in future render traditional banking  practice irrelevant unless banks embrace the technologies and partner with FinTechs.

He went ahead to reveal that in some climes already, the telecoms regulators are beginning to control more cash flows than the central banks.